Egypt Third Party Logistics (3PL) Market Size and Forecast (2023-2028) - Analysis by Mode of Transportation (Rail, Road, Air, Sea), Service Type (Freight Forwarding, Warehousing, Value-Added Services), and by Domestic and International Markets

Overview

Executive Summary
The 3PL (Third-Party Logistics) market in Egypt has experienced a significant growth rate of 4.8% in 2022, reaching a value of USD 3.02 billion. Egypt's logistics profile is critical to the country's economic revival. The logistics services business has been growing at a rapid pace as the market for international commercial operations has expanded. In addition to the swift expansion of international commercial activities, the growth in the logistics industry is propelled by the integration of port facilities and the high level of professionalism demonstrated by logistics providers. As the supply chain landscape evolves, logistics providers are assuming a broader role beyond product and resource transportation. They are now offering an extensive array of value-added services to clients, including "door-to-door" services.

Fueling Factor
One of the primary drivers of growth in the Egyptian 3PL market is the expansion of the Suez Canal. The Suez Canal is a crucial international trade route that connects the Mediterranean Sea to the Red Sea, providing a shorter passage for shipping between Europe and Asia. The recent expansion of the canal has enhanced its capacity and efficiency, leading to increased maritime traffic and trade activities. This, in turn, has created a demand for logistics services, including 3PL providers, to handle the movement of goods and facilitate trade.

Government Reforms
Over the past year, the Ministry of Transport has been able to implement a number of projects in various fields of transport, as part of the political leadership's interest in developing Egypt's transport system in accordance with the most recent global technological systems, in order to provide distinguished service to Egyptian citizens in the fields of roads, railways, and subways, as well as seaports. A new government law was also established that allows semi-governmental firms like the Egyptian Railways Company to issue bonds, increasing the volume of investment.

Performance of Segmentation

• By Services: The majority of the services market is dominated by freight forwarding and transportation. A notable development in warehousing has been done in recent years. Egypt's Supply Ministry signed contracts for USD 207.4 million (EGP4 billion) with Hassan Allam Utilities (HAU), Orascom Construction, and Samcrete to build four grain and basic commodities warehouses around the nation.
   
• By Industries in International Market: Petroleum accounts for the major market share, followed by Others, Chemicals, Electricals and Electronics, Machinery, Apparel, Iron and Steel, and Glazed Ceramics. Egypt's total petroleum product production in 2022 was 79.50 million tonnes.
   
• By Mode of Transportation in Domestic: Roadways account for the major market share, followed by River & Railways, and Airways. Given that majority of Egypt’s cargo moves by road, substantial improvement to motorway infrastructure is likely to create long-term benefits for the country’s economic development.
   
• By Mode of Transportation in International Markets: Marine accounts for the major market share. The country’s strategic location in the North African region provides transportation and logistics firms with unrivaled access to a growing regional clientele across Europe, the Middle East, and Africa, with the fastest turnaround times for goods and the shortest transit periods between seaports, airports, and industrial zones.

Future Outlook
Egypt Vision 2030 lists economic growth as a major part, which involves the development of the transportation infrastructure, which aims to transform the country into a production and distribution hub for Europe, the Middle East, and Africa. Project and contract logistics are anticipated to be in high demand as business and construction activity market penetration increases.

The long-term forecast for Egypt's logistics profile is thus favorable, as the Egyptian government's attempts to modernize the economy have so far helped in attracting the much-needed investments to carry out these changes.

Scope of the Study
The study titled "Egypt Third Party Logistics (3PL) Market Size and Forecast (2023-2028): Analysis by Mode of Transportation (Rail, Road, Air, Sea), Service Type (Freight Forwarding, Warehousing, Value-Added Services), and by Domestic and International Markets" conducted by Makreo Research provides a comprehensive analysis of the Third-Party Logistics (3PL) market in Egypt. The report examines the past, present, and future outlook of the industry, taking into account the impact of external factors such as the COVID-19 pandemic and macroeconomic conditions. The report further delves into the mode of transportation segment, examining both domestic and international transportation in Egypt. It evaluates different modes of transportation, such as rail, road, air, and sea, providing insights into their market shares and the regulatory framework governing each mode. Additionally, it explores major trade routes, key ports, and the impact of trade agreements on international transportation services. The study also offers a future outlook for the Egypt 3PL market, providing forecasts of market growth and trends. It identifies emerging opportunities and potential challenges while considering technological advancements and their impact on the industry. By assessing recent trends and conducting macroeconomic analysis, the report examines the influence of external factors on the industry's performance. The report includes a section on the competitive landscape, profiling major 3PL providers in Egypt.

Period of Study:
2018-2022 : Past and Present Scenario

2023-2028 : Future Outlook of the Industry

Base Period : 2022

Market Assessment:
The report examines the Egypt Transport and Logistics Market Revenue on various parameters covering the performance of the industry:

By Market

• Freight Forwarding
• Warehousing
• Value Added Services 

By Payment Method

• COD
• Online Payment

By Freight Type

• International Market
• Domestic Market

Segments Covered:
By Services

• Freight Forwarding
• Warehousing
• Value Added Services (VAS)

By Mode of Transportation

Domestic

• Roadways
• Riverways / Railways
• Airways

International

• Marine
• Air

By Industries (International Market)

Companies covered in the report:

• Agility Logistics
• Aramex International
• DHL Supply Chain
• DB Schenker
• Nile Logistics   
• World Cargo Egypt    
• EGY Logistics   
• Khawass Logistics